Certificate of deposit. A certificate of deposit is a receipt from or acknowledgment by a bank
that a certain amount of money has been entrusted to it as a special deposit. It is transferable. It
may be made payable by a correspondent of the bank in some other place. A certificate of deposit
cannot be drawn against by check.
A certificate of deposit is called a demand certificate when it is payable on demand or a time
certificate when it is payable on or after a certain future time. A time certificate usually bears
interest at a specified rate.
A certificate which represents stock deposited for the reorganization of a company or for some
other purpose is also called a certificate of deposit.